#Sec

The U.S. Securities and Exchange Commission (SEC) announced it has proposed new rules aimed at providing a clear and targeted framework for investment contracts involving crypto assets. In a statement, the SEC indicated that the proposed rules, titled "Crypto Asset Regulation," follow a March 2026 commentary clarifying how federal securities laws apply to certain crypto assets and transactions involving them. The statement emphasized that these efforts aim to address barriers to responsible capital formation and innovation in domestic crypto asset markets. The proposed regulations include two exemptions to the registration requirements of the Securities Act of 1933. The first exemption would provide a one-time exemption for issuances of up to $5 million over a four-year period. The statement noted that under the second exemption, issuances of up to $75 million per 12-month period would be permitted, adding, "Under both exemptions, issuers will be required to provide investors with disclosures based on certain principles. Furthermore, issuers benefiting from the second exemption will be required to submit financial statements and are subject to ongoing reporting obligations." The statement also noted that the proposed rule would offer a conditional "safe haven" arrangement, preventing the crypto asset from being considered an "investment contract," and that securities issued under these exemptions would not be subject to state-level registration and qualification requirements. SEC Chairman Paul Atkins, whose comments were included in the statement, indicated that the Commission's efforts to bring clarity to the crypto markets are ongoing, stating, "As Congress works to establish a lasting regulatory framework, the Crypto Asset Regulation aims to provide entrepreneurs and market participants with clear pathways to raise capital under federal securities laws." Atkins stated that the safe haven mechanism would be activated if issuers completed or permanently ended the essential governance processes they promised, emphasizing that developing this regulatory framework is a key element of the strategy to sustain innovation in US crypto asset markets for generations to come.